I want to invest $200 a week. This is for future so.. anyone any suggestions? Thinking og getting a piece of vacate land and pay its mortage.. good idea? Not really keen on stock market as have absolutely no idea abt it. And term deposit interest rate suxs…and NO I dont want to give it to anyone for free..
Want to Invest $200 a Week. Best Options I Have?
greatdealhunter on 08/02/2019 - 14:04
Last edited 08/02/2019 - 14:05
Last edited 08/02/2019 - 14:05
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I'd suggest checking out Raiz.
Its stocks, but its very easy to manage, you'll see growth fairly easy. Much more likely to see +5% returns when compared to having it sit in a bank account.
Vacant block is a bad idea - you're going to pay $200 a week, get charged $110 in interest per week, and real estate aint going too great at the moment.
I tried acorns for a while and reading more into the T&C's their cut is higher than EFTs and less value.
Phil, the amounts involved for a typical user of RAIZ is tiny. Try to access a Vanguard fund with a savings plan for the same investment and the fixed costs will kill any return.
I recommend RAIZ to young extended family members whose financial literacy/interest is low because it has a reasonable exposure to a diversified portfolio of equities delivering a reasonable return. It creates a good savings habit (with minimal pain). When the investment has risen to $30K+ other investments for part of the portfolio become more advantageous.
I'd probably go with managed funds where you can do a weekly purchase of more units. Don't need to do a whole lot of research, and then at least hopefully be earning a bit while you learn about investing in direct shares on your own.
Land idea is garbage as noted above.
Whatever you do, please stay away from that idea of purchasing a vacant land.
Start with a savings account.
Thinking og getting a piece of vacate land and pay its mortage.. good idea?
No. A piece of vacant land is a money-pit. It'll incur ongoing ownership costs while giving you exactly $0 returns unless you build a house on it and rent it out. (And that becomes a whole other proposition entirely).
step 1)
save up $5000 in a high interest bank account
step 2)
open a vanguard managed fund (i'd pick on of their diversified ones based on risk profile)
step 3)
bpay $200 every weeknot $200 a week, but I have this setup for my kids and deposit $ every month.
When they get older (and if i still like them ;) ) they'll get to split itwhere can i open vanguard managed fund
5k, direct with vanguard
then its just a regular bpay transaction of $100 or more whenever you want to add moreslightly higher fees than buying the ETF direct on the exchange, but no brokerage fee so much more convenient and suitable for those that want to make regular smaller buys
https://www.bdo.com.au/en-au/federalbudget2018/integrity-mea…
Soon you can't even claim negative gearing on vacant land.
Best investment IMO… education.
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Perhaps a business - Want to start print Tee home business - How much initial investment will I require to start ?
Surely putting $200 a week into the T-Shirt printing business will help to soar to riches!
Or there is always money in a banana stand.
If you are in the workforce have you considered topping up your super with extra payments?
Also when you salary sacrifice into super you can reduce the amount of tax you pay.
Better than any current investment options available.
As others have said keep away from land, prices are dropping almost daily and have a long way to go before bottoming out - maybe 2 years+
Thankx.. had look into it and topping up super is always good however its super and u cant withdraw/invest when u need it
RGI BDA……(this is not financial advice….)
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Go with Spaceship Voyager until you have $5000, then use that $5000 to buy IVV or A200. Repeat.
Also Quietgrowth another contendor for this type of accumulation, 0 roboadvice fees up to $10k (or $15k with referral). Slight different with Quietgrowth in that you became the legal owner of the securities and need $2k to start.
I've said it before on here, for the uninformed (ie those who don't like the stockmarket), look into roboadvice or managed funds providers. Someone earlier mentioned vanguard, I personally use Clover, there are others but i like it's app and platform, and fees are reasonable.
I used to work in stockbroking, i just dont have the time or the bother these days… and i like the returns and security from the diversified funds.
Land only is a bad idea. Banks are not going to lend you anything for speculative land purchase.
Better to put it aside for first home down payment.
I came for the 80k high yield investment car suggestion. Was disappointed.
awesome suggestions… thankx guys… majority pointing towards stock investment / or fund management. i must look into these then…
and convinced now not to invest in vacant land .. ✌️✌️
How long is long term?
I put some money into my super each month in addition to the employer super to invest in a low cost balanced index option.
It is good to consider there being three ways to grow your money.
Investment: buying property or shares where you (almost) guarantee a return on your money. In other words a dividend or a rental return.
Speculation: you purchase an asset hoping it will increase in value, but there is no yield (this it what you hope to do and why it would not qualify under the term investment).
Ponzi scheme: it takes a continual group of other investors to buy into the scheme and comes undone when this stops.
I work to hard for my money to then go and risk it on speculation. Especially when you are even further compounding the risk by leveraging (borrowing money such as having a mortgage on the asset with no yield and ongoing costs).
Consider a managed fund such as the previous posters or every time you save 1000 dollars buy a good quality Listed Investment Company (LIC) such as ARGO, Milton, Whitefield or AFIC. The previous suggestion is my preferred way (outside super) for someone who knows little about the stock market to protect and grow their wealth.
Easy one. Managed fund, probably an index one.
Vacant land? no, as it's not generating income and there is risk of decreasing value in the current market.
I'd say read up on shares and the stock market. There are still some pretty safe and sound investments possible. And it's significantly more liquid than a home or land.